Road commission to refinance bonds

Wednesday

Oct 16, 2013 at 12:01 AM

Shawna Jankoviak Staff Writer, @sjankoviakCDT @sjankoviak

County officials handled several items at their Oct. 8 regular meeting that will allow the Cheboygan County Road Commission to refinance its bonds to get a lower interest rate.
County Treasurer Linda Cronan said the bonds, from the building of the Road Commission's Indian River garage/facility, must be reissued through the county.
She said the Board of Commissioners must accept an engagement letter for bond counsel, authorize the issuance of refunding (refinancing) bonds and accept a disclosure/engagement letter for the bond underwriter.
Cronan said the Board of Commissioners must adopt a resolution authorizing the redemption of the balance of the prior bonds that were issued as Michigan Transportation Fund Bonds, Series 2004, dated as of May 1, 2004 and the issuance of refunding bonds for the purpose of refunding all or part of the county's outstanding securities. She noted the resolution specifies bonds not to exceed $2.55 million. The Board of Commissioners ultimately adopted the resolution.
The panel also accepted the engagement letter from bond counsel Dickinson Wright, PLLC explaining the services they will provide for the issuance of bonds by the county. The fee for the services will be rolled into the bond amount and paid at closing by the Road Commission.
The bond underwriter disclosure/
engagement letter from Hilliard Lyons, LLC was also accepted, with the cost to be part of the bond purchase agreement and paid for with bond proceeds. The Road Commission will pay for the cost as part of its bond payments.